RPM International Inc (RPM)
Return on total capital
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 889,303 | 905,806 | 768,397 | 694,727 | 753,838 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,885,360 | 2,510,880 | 2,140,840 | 1,982,430 | 1,741,060 |
| Return on total capital | 30.82% | 36.08% | 35.89% | 35.04% | 43.30% |
May 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $889,303K ÷ ($—K + $2,885,360K)
= 30.82%
The return on total capital (ROTC) for RPM International Inc. demonstrates variability over the period from May 31, 2021, to May 31, 2025. In 2021, the ROTC was recorded at 43.30%, indicating a relatively strong ability to generate profits from the company's total capital base. The following year, 2022, experienced a decline to 35.04%, representing a reduction of approximately 8.26 percentage points, which could suggest increased capital costs, higher expenses, or decreased operational efficiency during that period.
By 2023, the ROTC marginally increased to 35.89%, reflecting a slight improvement and possible stabilization after the decline experienced in 2022. This upward movement continued into 2024, with the ratio reaching 36.08%, indicating a modest but positive trend in the company's efficiency in utilizing total capital to generate earnings.
However, in 2025, the ROTC decreased again to 30.82%, representing a notable drop of approximately 5.26 percentage points from the previous year. This decline could indicate increased challenges in profitability, potential capital deployment issues, or rising costs impacting overall returns.
Overall, the data reveals that RPM International Inc.'s ROTC experienced significant fluctuations over the analyzed period, with an initial high in 2021, a subsequent downward trend in 2022, stabilization in 2023 and 2024, and a decline again in 2025. The general trend suggests that the company's effectiveness in utilizing its total capital to generate profits has faced periods of pressure, culminating in a lower return in the most recent year observed.
Peer comparison
May 31, 2025